James Murdoch faces new quiz over 'contradictory evidence'

MPs today demanded James Murdoch be ordered back to the Commons after his evidence over phone hacking was apparently contradicted.

The News International chairman came under new pressure hours after he was backed to stay on the board of broadcaster BSkyB, as it announced a huge increase in profits.

Mr Murdoch is accused of misleading the Commons' culture, media and sport committee last week when he denied knowing about a key document in the phone-hacking evidence files.

The so-called "for Neville" email was written by shamed private investigator Glenn Mulcaire and made clear that hacking was more widespread at the News of the World than the company was prepared to admit.

However, ex-NoW editor Colin Myler and the paper's former legal manager Tom Crone later insisted they showed the memo to Mr Murdoch when he approved an out-of-court settlement with Gordon Taylor, Professional Footballers' Association chief executive.

Committee members were meeting in private today to decide if Mr Murdoch should be ordered back for another grilling. Labour MP Tom Watson, a member of the committee, said: "I am going to recommend that we ask all three to appear before the committee. I think we need to be able to see the whites of their eyes."

Mr Murdoch has said he stands by his evidence to the committee. John Whittingdale, committee chairman, said the dispute might be dealt with by letters. "The first step will be to write to Colin Myler and Tom Crone - and also to James Murdoch - to ask them to clarify and to give further details," he said.

Labour's deputy leader Harriet Harman backed a recall of Mr Murdoch as his evidence had "now been flatly contradicted" by Mr Crone and Mr Myler.

The "for Neville" memo is believed by some to be evidence that the NoW's chief reporter Neville Thurlbeck was implicated in malpractices.

BSkyB gave unanimous backing to Mr Murdoch to stay on as its chairman today, at the same time as it revealed a 23 per cent surge in annual operating profits to £1.1 billion. It came days after News Corporation, Rupert Murdoch's media company, was forced to drop its bid for total control of BSkyB.

The broadcaster also announced a partnership with rival BBC to broadcast live Formula 1 between next year and 2018. The move will see Sky Sports show all races, qualifying and practice sessions and the BBC show half the races and qualifying sessions.

Jeremy Darroch, BSkyB chief executive, confirmed that there had been a debate on Mr Murdoch's future. He said: "The board discussed governance generally. That included the role of the chairman. In the end the board was unanimous in its conclusions."

Meanwhile, Sara Payne, the mother of murdered schoolgirl Sarah Payne, was said today to be "absolutely devastated", after being told her phone may have been hacked.

Phoenix Chief Advocates, the organisation run by Mrs Payne, said: "We're all deeply disappointed and are just working to get her through it." Mrs Payne was a close friend of former NoW editor Rebekah Brooks. Her mobile number was in notes kept by Mulcaire, who was paid a retainer by the newspaper, implying that he either hacked the phone directly or harvested its number from another phone.

Mrs Brooks has said it was "unthinkable" for the newspaper to have hacked into the voicemails of Mrs Payne, who campaigned with the NoW for child protection laws.